Bits raises €12 million to accelerate compliance automation amidst EU regulatory tightening

Stockholm startup Bits secures €12 million in Series A funding to enhance automation and expand its integrated compliance platform, aiming to streamline anti-money laundering and customer onboarding processes across Europe amid increasing regulatory demands.

Bits, a Stockholm start-up that supplies compliance and customer onboarding infrastructure to banks and regulated fintechs, has closed a €12 million Series A to accelerate automation of financial‑crime controls and widen its range of regulatory and data integrations. The round was led by Alstin Capital and included Cherry Ventures, Unusual Ventures and Alliance Ventures, with an additional individual investment from Haval van Drumpt, Chief Executive of Tre Sweden. (Sources: EU‑Startups; company summary).

Jonatan Klintberg, Bits’ chief executive and co‑founder, framed the company’s mission in stark commercial terms, saying: “Our customers need to scale, convert, and remain compliant at the same time.” He added: “We built Bits to make compliance a growth enabler rather than a bottleneck. By unifying onboarding, fraud, and AML workflows in a single platform, teams gain the speed, control, and confidence needed to expand across Europe.” According to the announcement, Bits supports KYC and KYB processes across more than 100 jurisdictions and connects to a broad ecosystem of company registries, eID providers and sanctions, PEP and beneficial‑ownership data. (Sources: EU‑Startups; company release).

Investors and market observers say the funding reflects a wider wave of venture capital targeting automation in risk and compliance tooling across Europe. Industry activity cited alongside the round points to larger raises for adjacent firms that aim to automate decisioning and risk workflows , notably Taktile’s substantial funding to scale AI‑driven decision platforms for onboarding, credit, fraud and compliance across markets. Those transactions underline persistent appetite for technologies that reduce manual casework and standardise controls across jurisdictions. (Sources: EU‑Startups; Taktile reporting).

Alstin Capital’s Alexander Meyer‑Scharenberg emphasised the strategic value investors see in an integrated approach to compliance, saying: “For regulated entities, compliance is becoming a platform challenge, which cannot be addressed by point‑solutions. Bits Technology unifies AML and fraud workflows into one system with consistent decisioning and auditability. The product is exceptional and it shows the team understands compliance operations from the inside.” The investor commentary accompanied Alstin’s role as lead backer. (Source: investor statement).

Bits claims its platform can cut manual case handling by roughly half to two‑thirds and speed onboarding and approvals by four to six times, turning processes that once took weeks or months into workflows completed in days or hours while reserving human review for higher‑risk customers. The company says the new capital will be used to broaden data coverage across Europe, deepen automation across fraud and financial‑crime detection, and expand its go‑to‑market team with a focus on the DACH region and the UK. (Sources: EU‑Startups; company statement).

The market backdrop for such product offerings is a tightening regulatory environment in the EU, where moves toward a harmonised anti‑money‑laundering rulebook increase operational demands on banks and fintechs. Many firms still operate fragmented compliance stacks assembled from local data providers and manual processes, which slows cross‑border expansion and raises costs; unified platforms seek to replace that patchwork with a single integration that provides consistent decisioning, audit trails and continuous monitoring. Comparable vendors that have recently scaled illustrate how investors are betting on automation and governed AI to manage risk across the customer lifecycle. (Sources: EU‑Startups; Taktile filings and industry coverage).

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Source: Noah Wire Services